Managing Innovation: Theories and Application of Blue Ocean Strategy

Managing Innovation

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAINBODY...................................................................................................................................3
Theories of Innovation.................................................................................................................3
Application of Blue Ocean Strategy............................................................................................8
Historical Development.............................................................................................................10
Application of Diffusion Theory in the future development.....................................................11
Recommendation.......................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation is the procedure of involving and applying multiple activities to disclose new
ways to improve people living standard. The main goal of the innovation to resolve customer
problem by meeting their needs and make the world a better place whereas they can live their life
effectively. Innovation supports organization to build dynamic capabilities which leads
competitive advantage and differentiate brand from others as well in the business market. While
innovation management refers as a combination of the management of the innovation and change
management effectively. It is important for the organization’s success because it helps to
transform new idea into realistic method or product which leads financial benefits within
company as well as differentiate brand from others. To understand role of innovation has an
example of Deliveroo company. The main objective of the report provides understanding about
innovation that it’s significance in business through two innovation theories.
MAINBODY
Theories of Innovation
There are numerous theories of innovation i.e. blue ocean and diffusion innovation
theory. these are worldwide famous theories that helps to gain competitive positioning in the
business market. Innovation theories are described as following:
Diffusion of innovation theory
It is one of the most famous and common theory that express the way communication
procedure explore an idea or good based on large group of people living in the community.
Individuals get aware about current trends and technologies and requirement or expectation to
buy certain products to think that it is innovative and creative at the same period fulfil needs of
them in precise manner (Franceschinis and et.al., 2017). Organization must aware about its target
customers’ needs and expectation for whom company plans to introduce services, products or
ideas. Diffusion innovation theory is further classified into five broad categories from which
organization can create various strategies to encourage people to accept innovation. The
categories are described as follows:

Innovators: This category involves only those people who are highly interested to adapt
innovation and introduce new goods and services for satisfying customer’s needs and demands
effectively. So these type people are known as first person who take initiative to lead new idea or
innovation in the society after that to know that it can be prove risky for them (Scott and
McGuire, 2017). Thus, these types differentiate themselves from others.
Early adapter: In this category includes those persons who have prior knowledge about emerging
trends and innovation that helps to adapt numerous changes earlier without any delay. These
type people do not need extensive information to encourage their customer to make buy products
or services of the firm as they have prior awareness of change and innovation which have to lead
in society.
Early Majority: It consist those people who adapts certain technologies or innovation based on
success stories of the people to analyse about effectiveness of innovation or technology. So they
does not include in leader’s category because they track those people who are satisfied with
innovation or technology before implementing such ideas or products within their firms.
Late Majority: This category adapts people who follows change or innovation after seeing,
analysing and evaluating that large group of people have followed such innovation (Zhang and
et.al., 2019). In the same period, they also examine that how such innovation is enabled to fulfil
customer’s need and demand successfully. Based on the evaluation these people decide to adapt
change or innovation.
Laggard: Those people who always finds difficulties to influence customers to buy certain
products and they are bound through their custom and tradition. These type people are promoted
to adapt change or innovative ideas or products through pressure from other competitors or
people to adapt such innovation.
Process of diffusion innovation theory
The procedure of developing innovative products or services to fulfil expectation of users
then it plans way or method to influence awareness in people about new product and services or
innovative ideas to promote early adapters. When products enable to fulfil needs and expectation
of people then large group of people initiates purchasing through analysing and evaluating